JOHANNESBURG- South Africa's central bank raised its main lending rate by 25 basis points to 3.75% on Thursday in a close call, the first rate hike in three years in response to growing inflation risks. The rate hike comes after the South African Reserve Bank (SARB) flagged inflation risks in a monetary policy document last month. The central bank slashed its repo rate by 300 basis points last year to a record low to keep the coronavirus-ravaged economy afloat. Global producer and food inflation, oil prices and domestic electricity prices were among the main inflation risks cited by the SARB on Thursday. The central bank revised slightly higher its headline consumer price inflation estimate for 2021 to 4.5% from 4.4%.

Source: The North Africa Journal November 18, 2021 14:31 UTC